According to the U.S. Stock Research Agency, the Zhitong Finance APP learned that NVDA (NVDA. US) will not continue to buy Arm after the bank of America issued a research report saying that it maintained Nvidia's "buy" rating.
Bank of America analyst Vivek Arya said the situation would benefit Nvidia's prospects in the U.S., U.K. and China, given that the deal faces "considerable regulatory headwinds" around the world, including the U.S. Arya said the company's "unique and highly leveraged accelerated computing platform is best positioned in the industry to capture several of the most important, decades-long-term growth opportunities." ”
Bank of America argues that Nvidia doesn't need to own Arm to use its technology to expand in data centers, and arm smartphone sales "have a highly growth-dilutive effect" with cash and stock worth the equivalent of $55-60 billion.
Finally, even if the deal is completed, it will be an "ongoing" source of complex royalty negotiations, including with Nvidia's rivals.
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